Japanese Beauty Is Suddenly Expanding In The U.S.—Why Just Now?

Share to Facebook Share to Twitter Share to Linkedin The brands featured in Shikō Collective’s Japanese Beauty (J-beauty) portfolio Photo courtesy of Shikō Collective Japanese beauty (J-beauty) is finally expanding its reach in the U.S. The breakthrough is a long time coming, according to Seiso JBeauty creator Tracy O’Connor, a Southern California-bred beauty consultant and brand strategist. O’Connor spent years studying the success of trailblazers like Shiseido—along with Tatcha and SK-II to follow—that have gone mainstream in North American markets. Her own recent contributions to the space (which we’ll get to), combined with others, coincides with the steady growth J-beauty is expected to see over the next few years. According to a report by Statista, revenue generated in Japan’s beauty and personal care market is projected to reach more than $47 billion by the end of 2024. Skincare alone in Japan has a market volume of more than $22 billion in 2024. A compound annual growth rate (CAGR) of 2.41% is expected by 2028. According to another industry report, a shift toward e-commerce has created opportunities for J-beauty brands to reach a wider audience and expand their online presence. Among contributors to J-beauty’s e-commerce growth is O’Connor, who launched her online Shikō Beauty Collective in Feb. 2021. Based on knowledge of what’s selling in the U.S., combined with what she observed directly in Japan, O’Connor partnered with decades-long experts to launch her digital platform. Featuring 13 cutting-edge brands native to Japan, (including her own Seiso JBeauty), Shikō is a curated digital beauty hub based in New York City. As a sufferer of chronic cystic acne well into her thirties, O’Connor discovered the Hada Labo Rohto Gokujyn Hyaluronic Acid Cleansing Foam, which changed her life. This led her on a near-decade-long journey through Japanese beauty discovery. In recent months alone, J-beauty has seen even greater developments in the U.S. market (primarily in Los Angeles). Shikō developed an exclusive brick and mortar partnership in April 2024 with STRIIIKE, a Beverly Hills-based hair and beauty studio. This preceded the June 2024 launch of Maison KOSÉ, the first standalone store in the U.S. that showcases KOSÉ Corporation’s portfolio of leading Japanese cosmetics clients. KOSÉ globally partnered with beloved Los Angeles Dodgers pitcher Shohei Ohtani to bring more awareness to the development. Maison KOSÉ is located at The Shops at Santa Anita in the Arcadia section of L.A. The opening of Maison KOSÉ closely coincides with the expansion of DECORTÉ, a luxury leader in KOSÉ’s portfolio. Piggybacking off the success of its best-selling Liposome Advanced Repair Serum, DECORTÉ launched at Nordstrom online in March, in addition to Saks, Bloomingdale’s and a curated selection at Moda Operandi. Meanwhile, SEKKISEI, a more accessible prestige brand, just launched in the U.S. on Amazon, in addition to its DTC site. KOSÉ Corporation’s best-selling Decorté Liposome Adavanced collection Photo courtesy of Maison KOSÉ MORE FOR YOU WWE Raw Results, Winners And Grades After Great Wyatt Sicks Follow-Up The Nasdaq 100 Support Levels That Traders May Be Targeting. HeyGen AI Video Scores $60 Million, Plus More Cinematic AI Shorts “The U.S. is a fiercely competitive, but exciting market,” O’Connor says. “Breaking through the competitive noise requires a sophisticated, nuanced approach to marketing, branding and communications that is customized and fine-tuned to the U.S. To be successful, a brand needs to tick a lot of boxes. How businesses do that in Japan doesn’t necessarily work here. Without U.S. market experience, deep pockets and the ability to learn quickly and be agile, it’s very hard for foreign brands to be competitive. With bases and resources generally overseas, most Japanese companies simply don’t have the support, stamina or expertise to establish a brand and fuel momentum here in the U.S.” Other hurdles or barriers to entry “include the depreciation of the Japanese yen (currency), operational challenges and an education gap,” O’Connor goes on to say. “Products are made overseas and shipped from Japan. So there are increased costs associated with importing goods. And for U.S. consumers and retailers alike, there is an education gap and a robust need for training because technologies, ingredients and even product categories can be different and unfamiliar.” Why Is J-Beauty So Popular Suddenly in the U.S.? KOSÉ has had its eyes on the L.A. market for some time. “It’s very appealing from a retail perspective, and it’s one of the largest and most culturally diverse regions in the U.S.,” says Takayuki Morimatsu, President & CEO of KOSÉ America, Inc. “It’s also home to our global ambassador, which offers many advantages in terms of effectively leveraging the partnership. In terms of Arcadia, there’s a growing segment of Asian consumers who are very passionate about Japanese beauty and skincare rituals, as well as beauty aficionados across all demographics who we want to reach. There are also many in this community who are familiar with one or more of our brands. The Shops at Santa Anita has robust foot traffic, as well as a built-in beauty customer with Sephora and Nordstrom there.” Global ambassador Shohei Ohtani is featured in a promotional image for Maison KOSÉ Japanese beauty … [+] store at The Shops at Santa Anita Mall in Arcadia, CA. Photo courtesy of Maison KOSÉ In terms of the U.S. collectively, O’Connor says now is the perfect time, thanks to “K-beauty’s mainstream success, along with the proven success of American-owned, Japanese-inspired brands, and increased awareness and demand for Asian beauty, wellness products and clinically driven skincare.” Additionally, she adds, “There are longstanding, positive associations in the U.S. with Japanese products that are linked to quality, safety, luxury and well-being. Japanese people consistently rank as the healthiest in the world with the highest life-expectancy rates globally. These associations give Japan inherent credibility in the personal care and wellness spaces. Also, American consumers and retailers are looking for transparency and authenticity. For all these reasons, I believe Japanese brands are well-positioned to bring their expertise, cultural heritage and unique value propositions to the American and western markets in a meaningful way.” For STRIIIKE co-founder Kristie Streicher, who has a longstanding relationship with O’Connor, the new in-store partnership and its timing made perfect sense. “Tracy introduced us to the brands in Shikō’s highly curated portfolio, and we were really impressed with their efficacy and innovation,” Streicher says. “We felt the alignment was perfect for our clients. We were given the opportunity to be the first to exclusively offer these amazing Japanese brands in the U.S., which is why the timing made so much sense to us. We always try to bring our community the newest and most effective products out there, and we were excited about offering the best in Japanese beauty exclusively in the U.S.” J-Beauty vs. K-Beauty: What’s the Difference? Multi-step skincare routines reigned amid the pandemic when consumers were stuck at home. In fact, many consumers explored skincare for the first time. While South Korean culture has been popular in the states for decades, K-beauty especially stood out in the early days of the pandemic. Brands like Hanskin, Tony Moly and Banila Co. drew new fans thanks to fun packaging, sensorial multi-step routines and trend-driven formulas. Much like Korean pop-culture, K-beauty has been described by O’Connor as fun. Additionally, “K-beauty tends to lean toward a more dramatic, dynamic skin finish,” according to a writeup on the Shikō Collective blog site. “For example, a glass skin finish can be achieved by using primers, BB/CC cream, foundation, etc., for a dramatic, cutting-edge result.” J-beauty, on the other hand, “leans into skin health and texture for a more natural look that can be achieved via skincare products primarily,” the writeup goes on to say. “Japanese beauty is focused on meticulous and mindful skincare rituals rooted in both tradition and science,” explains Shikō’s in-house esthetician Kyoko Getz. “Most Japanese beauty features both time-honored ingredients and cutting-edge approaches. It focuses on achieving healthy and radiant skin at every age and is committed to a holistic approach to well-being. While Western philosophies can sometimes focus on one ingredient, Japanese beauty always seeks balance and tends to focus on ingredients and product formulations that support and honor the natural rhythms of the skin, nourish and nurture.” The most important takeaway is that one is not better than the other—they’re just different formulas and marketing that appeal to different consumers. What Strategies Will Maintain J-Beauty’s Success in the States? After “testing the waters” with Shikō’s original launch, O’Connor says she went full speed ahead building out a team that could bridge the gap between Japan and the U.S., and keep up with the ever-changing beauty landscape in the states. Some of these efforts included hiring a public relations team in fall 2023, launching a media awareness education campaign, and familiarizing celebrity makeup artists with the movement. For AAPI month in May, the team launched a “Together We Glow” campaign focused on shedding light on the diverse heritage of the U.S. and how it’s also reflected in the diversity of the team behind Shikō. The collective dedicated its homepage and social channels to showcasing the AAPI heritage of each team member, while shedding light on each of their favorite AAPI products. For KOSÉ’s part, their leading brands—DECORTÉ, SEKKISEI and ADDICTION TOKYO—“are already in the market and gaining tremendous momentum,” Morimatsu says. “We also selected brands that are new to the market that have potential due to their popularity in Japan and throughout Asia, and align with trends we’re seeing in the market. Maison KOSÉ is an ideal launchpad for these brands in a setting that allows us to test and learn, as well as gain further insights into the U.S. customer as it relates to Japanese beauty.” In the meantime, they can take a page from Shiseido’s playbook. “We leverage our globally acclaimed research and development to continuously deliver breakthroughs that push the boundaries of skin science, exceed expectations, and elevate the consumer experience worldwide,” the brand shared in a statement for this article. “[We] never lose sight of core values like omotenashi, the Japanese practice of selfless service, bestowing compassion and empathy and showing the utmost respect. Our heritage is our essence and continues to be at the core of everything we do.” Since launching in 1872, the brand has 2,500 patents, 28,000 clinical trials and 31 awards from International Federation of Societies of Cosmetic Chemists (IFSCC) Congresses and Conferences. “Shiseido has a rich history of combining the best of the east and west to transform the future,” the statement continues. “We’ve built a legacy of the world’s firsts.” Follow me on LinkedIn. Check out my website. Dahvi Shira Following Editorial Standards Print Reprints & Permissions

Categories: Beauty

Related news

June 10, 2024

Magic of Science Fair and Family Festival | PHOTOS

Children and adults who kicked off the summer at the Magic of…

June 11, 2024

Dr. Frederic Bertley: Championing Climate Science In An Era Of Denial

Share to Facebook Share to Twitter Share to Linkedin Dr. Frederic Bertley…

June 12, 2024

Rewards, points, miles: A primer on travel credit cards

Holly D. Johnson | (TNS) Bankrate Travel credit cards make it easy…

June 12, 2024

(Poster) China in World Press

(Poster) China in World Press | China's economy set for stable growth:…

June 12, 2024

(SP)HUNGARY-BUDAPEST-OLYMPIC QUALIFIER SERIES BUDAPEST-SPORT CLIMBING-WOMEN'S BOULDER & LEAD FINAL-BOULDER

(SP)HUNGARY-BUDAPEST-OLYMPIC QUALIFIER SERIES BUDAPEST-SPORT CLIMBING-WOMEN'S BOULDER & LEAD FINAL-BOULDER Home Tokyo News…

June 13, 2024

4th LD-Writethru: Xi stresses sci-tech modernization, innovation

BEIJING, June 24 (Xinhua) -- Chinese President Xi Jinping on Monday underscored…